The company said in its statement early this week that the shares were being delisted to conduct a share swap with Thanh Thanh Cong Tay Ninh Sugar JSC in accordance with the M&A agreement between the two companies.

Shares of Bien Hoa Sugar JSC will be delisted from the stock exchange on August 30 and the last trading day is August 29.

Shares of the two sugar producers have gained significantly since May on market speculation of a merger between the two largest companies in the sugar industry.

The two sides on June 7 signed a merger agreement to create the largest sugar company in Vietnam with 30 percent market share.

Under the agreement, Thanh Thanh Cong Tay Ninh Sugar JSC will swap its shares with more than 300 million shares of Bien Hoa Sugar JSC at the rate of 1:1.02, which means each share of Bien Hoa Sugar is equal to 1.02 shares of TTCS.

Shares of both companies are listed on the HCM Stock Exchange. SBT is the code for Thanh Thanh Cong Tay Ninh JSC and BHS is the code for Bien Hoa Sugar JSC.

SBT has surged 51.5 percent in the last two months and BHS has gained 30 percent in the same period. BHS stocks closed unchanged on July 19 at 21,100 VND (0.93 USD) a share while SBT increased 0.7 percent to settle at 38,450 VND each.

At the current price level, total market capitalisation of SBT after the merger will reach 950 million USD.

The merger will increase the chartered capital of Thanh Thanh Cong Tay Ninh by more than 3 trillion VND (133.3 million USD) to 5.57 trillion VND. The new company will have total assets of 14.67 trillion VND and total payable assets of 7.86 trillion VND.